The IASB has a number of projects underway to promote the effective communication of information in the financial statements. Key projects include Principles of Disclosure. The objective of this research project is to improve existing guidance in IFRS that helps entities determine the basic structure and content of a complete set of financial statements. The focus is on reviewing the general requirements in IAS 1 Presentation of Financial Statements, and considering how they may be revised. The aim is to develop a Disclosure Standard that improves and brings together the principles for determining the basic structure and content of the financial statements, in particular the notes. In March 2017, the IASB published a Discussion Paper Disclosure Initiative – Principles of Disclosure.

Required:

Critically discuss how a company could determine whether any disclosure is proportionate to the risks and whether this implies that there should be fewer mandatory disclosures which lead to ever more complexity.